Oi Biggles!

[Skweeky]

Right so for example:

If you bought a delivery van for use in the business you could decide in the first year to use 40% ( for example)of its value to be put against any income?
You can then spread the remainder over the next few years?

[Biggles]

I hope the above helps - it all makes sense to me (or is that sence?) but then that is not saying much

[thewizeard]

No... I mean things like 'sales ledger', 'VAT' etc...

That's so..boring how about..Jupiler erm...Westermalle and white widow?

[Biggles]

Right so for example:

If you bought a delivery van for use in the business you could decide in the first year to use 40% ( for example)of its value to be put against any income?
You can then spread the remainder over the next few years?

For the Balance Sheet yes you could although the two most popular methods are

Straight Line - same amount each year
Reducing balance say for example 20% of the outstanding balance each year.

When sold the item is netted off

Original purchase price less Sale price and
Depreciation to date (stupid thing didn't show the columns)


The figure that balances the two sides is either a profit or loss and is shown in the P&L account

For tax purposes the Treasury set the times and percentages and although used for tax calculation are not shown on the balance sheet and P&L - although the finalised tax owed is.

[Skweeky]

Also, can you just confirm that the liquidity ratio is the amount of actual money (or goods that can be turned into money immediately) in proportion to their assets ( ie buildings, machinery etc...)

[Skweeky]

Biggles, you can't ever tell anyone about this :scared:

I think we're safe for now, no one will read any of this nonsense

[Skweeky]

Right, I'm not going to stress about it

I've spent 4 years of my life, 5 hours a week, filling in sales ledgers and working out balance sheets and profability ratios.
I have a bit of paper that says I can do it so there


BTW: If you happen to know the accountant from New Pig in Hamilton, can you just tell him to hire me?

[Biggles]

Also, can you just confirm that the liquidity ratio is the amount of actual money (or goods that can be turned into money immediately) in proportion to their assets ( ie buildings, machinery etc...)

No to get your liquidity ratio you divide Current Assets by Current Liabilities

There are two versions the Acid Test version is Current Assets less Stock divided by Current Liabilities

In both, long term assets (buildings etc.) and long term liabilities (bank loans etc.) are excluded as neither are immediately available to increase or impair the calculation.

The purpose of the liquidity calculation is to check to see if there is a cash flow problem. A business that has great long term potential but can't pay its suppliers or staff today usually fails unless it can get further backing.

[Biggles]

Biggles, you can't ever tell anyone about this :scared:

I think we're safe for now, no one will read any of this nonsense

I can see my street cred such as it was plummeting like a lemming on a family picnic

[Biggles]

Right, I'm not going to stress about it

I've spent 4 years of my life, 5 hours a week, filling in sales ledgers and working out balance sheets and profability ratios.
I have a bit of paper that says I can do it so there


BTW: If you happen to know the accountant from New Pig in Hamilton, can you just tell him to hire me?

We buy our spill kits from New Pig.